When a Firm in One Nation Purchases Unfinished Products Internationally

question 189

Multiple Choice

When a firm in one nation purchases unfinished products internationally and adds further processing to sell in the domestic market, this is known as:

• A) barter.
• B) offshoring.
• C) factor movement.
• D) marketing arrangements.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains.

Borrowed

The act of receiving something with the intention to return it, often referring to money in financial contexts.

Matured

Used to describe financial instruments or investments that have reached their due date for payment or realization.

Investment

Allocation of resources, usually money, with the expectation of generating an income or profit.